NASDAQ Provides COVID-19-Related Regulatory Relief from Price-Based Continued Listing Standards

Capital Markets COVID-19 Resources

The SEC has declared effective a rule change previously requested by the Nasdaq Stock Market LLC (NASDAQ) to suspend, as of April 16, 2020, the application of NASDAQ’s continued listing bid price and market value of public float requirements (collectively, “Price-based Requirements”) until June 30, 2020. Under NASDAQ’s continued listing standards, companies whose stock’s closing bid price is below $1.00 per share, or who fail to meet minimum market value requirements for their publicly-held shares, in each case for 30 consecutive business days, face potential delisting after certain grace periods to regain compliance.

Under the revised rule, NASDAQ will continue to notify companies about new instances of non-compliance with the Price-based Requirements during the suspension period. However, in those instances the grace periods for these companies to regain compliance will not begin until July 1, 2020. In addition, companies presently in a delisting process for non-compliance with the Price-based Requirements will have that process suspended and will receive the benefit of any remaining grace period to regain compliance starting July 1, 2020. NASDAQ will continue to monitor companies during the suspension period to determine if they have regained compliance by satisfying the Price-based Requirements for 10 consecutive days.